CASINO OPERATIONS MANAGEMENT PDF

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Casino Operations Management. 2ND Edition - Ebook download as PDF File . pdf), Text File .txt) or read book online. Casino Operations Management is a suite of software applications designed casino environment aimed at optimizing the processes that take place on the. CASINO OPERATIONS MANAGEMENT SECOND EDITION Jim Kilby Jim Fox Anthony F. Lucas John Wiley & Sons, Inc. pensugetheatcie.cf 1/8/04 PM Page ii pensugetheatcie.cf .


Casino Operations Management Pdf

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of APUS. 1. Department of Management. HOSP Casino Operations Management. 3 Credit Hours. 8 weeks. Prerequisite(s): HOSP Table of Contents. Casino Operations Management - [Free] Casino Operations Casino Control Act can be viewed here in two formats, as a PDF or as a Word. Description. Complete guidance to the ins and outs of gaming operations. Management personnel need a thorough understanding of the business side of the.

The chief financial officer and chief executive officer or licensed owner must submit a signed letter attesting to the system's compliance with the requirements of Regulation 6. The MICS established specific control procedures that were required to be in place within the operation of each nonrestricted licensee. MICS were established for the following areas: Alternative procedures that provide adequate control may be approved by the chairman based on a written request for a variance by the licensee.

Otherwise, the licensee is expected to comply with the MICS. The licensee is required, on an annual basis, to have an independent accountant perform a comparison of the system submitted by the licensee to the MICS and to issue a report that identifies any procedures the accountant believes do not satisfy the MICS or any variations from the MICS granted by the chairman. The report must also include responses from licensee management addressing any items of apparent noncompliance noted.

As part of this revision, MICS were established for electronic data processing. In Nevada, the licensee has broad latitude in creating the internal control system that best suits the operation, whereas in New Jersey there is little flexibility in this process.

Table 3. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The mission of this chapter is to present and discuss the organizational structure of a typical casino and hotel along with descriptions of the responsibilities of a number of the key positions within the operation. The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions.

Although every department and position is equally important to the success of the organization, only the positions within the casino department or those that are integral to the day-to-day operations are detailed. At the bottom of the chart are the front-line employees, including dealers, cage cashiers, and change attendants. Toward the top of the chart are the management positions, including the games manager, the director of casino marketing, and the vice president of casino operations.

As employees move up within the organizational structure, the skills necessary to perform the job functions change. Front-line employees need technical skills to fulfill their position responsibilities, whereas employees at the top of the chart require fewer technical skills and more management skills.

The management pyramid Fig. Variations based on the size of the operation, as well as the number and type of games offered, are common. These variations are too numerous to be addressed in this chapter. The typical organization starts with the president and branches out, based on functional responsibilities.

The departments are divided along functional lines to provide for specialization as well as separation of responsibilities for accountability and control. The vice presidents of security, human resources, and finance all perform responsibilities that require them to operate independently of the operating department heads. For example, it would not be in the best interest of the operation for the director of surveillance, who is responsible for monitoring activity within the casino, to report directly to the vice president of casino operations.

The director of surveillance and his or her staff are a key part of the protection of the gaming operation and its assets, and any impairment of these responsibilities has a direct impact on the success of the operation. Generally, the vice president of finance reports to the president directly.

Depending on the ownership structure of the casino, the vice president of finance may instead have a direct reporting relationship to a representative of the owners.

The vice president of finance is a key position in any casino organization, since the responsibilities of this position include establishing and tracking performance against budgetary guidelines, auditing the results of operations, regulatory compliance, and, in most casinos, overseeing the cage, credit, and collection functions.

This individual is not only a check and balance on the other operating departments, but is also responsible for safeguarding the assets, including the cash maintained for the day-to-day operation of the casino. The following are brief position descriptions for many of the key positions indicated in the organizational chart presented Fig. The re- Figure 4. Ultimately, all personnel report to the president.

The person in this position reports to representatives of the owners. Vice President of Finance—Responsible for all financial activities for the operation. Direct reports normally include accounting, cage, credit, collections, information systems IS , and downloading. Vice President of Casino Operations—Responsible for the overall operation of the casino, including slots, table games, and other gaming operations such as keno, race and sports, and poker.

Gaming and gaming compliance are two critical areas of responsibility for this individual. Vice President of Security—Responsible for surveillance, security, investigations, safety, and risk management, which includes handling insurance issues and guest loss complaints. The following are brief descriptions for many of the key positions indicated in the organizational chart presented Fig. Supervises the shift managers. Supervises the pit managers and all other table games personnel during the shift.

Supervises the floorpersons and dealers within the pit and is also responsible for customer relations and games protection. Supervises the dealers at the assigned tables. Also responsible for compliance with house rules and rating player action.

Dealers must comply with house rules for the conduct of the particular game. This position may report to either cage or casino supervisory personnel. Supervises the shift managers and head slot mechanic. Shift Manager Slots —Oversees the operation of the slot department, including all personnel during a particular shift. Responsibilities include customer relations and verification of large jackpot payouts. Head Slot Mechanic—Responsible for the maintenance and repair of all slot machines.

Also maintains records pertaining to all slot machines, including location, par sheets, and any changes to the machine. Supervises and trains all of the slot mechanics.

Floorperson—Responsible for participating in the verification and conduct of jackpot payout and hopper fill transactions. Supervises change attendants and booth cashiers.

Change attendants—Perform customer service transactions, including making change. Also responsible for an assigned bank. Booth cashiers—Responsible for completing jackpot payout and hopper fill transactions. Also responsible for making change and redeeming coins for slot customers. Also responsible for designing and implementing programs to attract new and repeat customer visits.

Oversees operation of the slot club, casino hosts, branch offices, tournaments, and special events. Involved in verifying payouts on winning tickets. Writers are based behind the keno counter, whereas runners go to where customers may be, such as restaurants and lounges. May perform as the poker cashier as well as conducting tournament activities.

Director of Race and Sports—Responsible for the operation of the race and sports department, including staffing, customer relations, game integrity, compliance with gaming regulations, and financial performance. Race and Sports Shift Manager—Responsible for the operation of the race and sports book during a particular shift.

Race and sports shift managers are responsible for administrative functions relevant to updating event information in the computer system as well as verifying payouts on winning wagers. Race and Sports Writer Mutuel Clerk and Cashier—Provide service to customers by accepting wagers and handling payouts on winning tickets. Participates in casino transactions, including table fills and credits, and may participate in slot transactions, including jackpot payouts and hopper fills.

Observes card and dice transfers and maintains security over the drop and count process. Controls access to keys permitting access to sensitive and restricted areas. Focus is on compliance with gaming regulations, house rules, internal control procedures, and asset protection.

It is common for computer systems to be used to record revenue in gaming areas such as slots and keno, as well as other casino hotel areas including hotel operations front desk, room reservations, etc. Such systems are also heavily relied upon in the back of the house for operations including accounting, payroll, and downloading. Understanding these systems and how they are integrated to accumulate and report data is important to successfully managing the casino hotel operation.

Figure 4. Management must be able to forecast the number of anticipated customers who will visit the casino during different periods and provide staffing levels that will be appropriate to service these customers.

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Overstaffing or understaffing may have negative consequences for the bottom line of the casino. Understaffing may result in loss of revenue due to customers leaving the casino because of inadequate service or unavailability of gaming positions at their desired game.

Either of these conditions is undesirable for casino management. The following discussion, using a hypothetical casino, provides a methodology for determining proper staffing levels based on the number of tables in operation during different days of the week.

How many employees are needed to staff a casino under the following conditions: Dealers will work 60 minutes at the table, followed by a minute break. Floorpersons will receive breaks totaling minutes out of each minute shift eight hours.

The following numbers of tables are assumed to be required by day for blackjack BJ , dice, and baccarat: BJ Tables Open: The number of stations needed to be open for each day of the week must be determined.

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A station is defined as a position that must be staffed for the entire shift. In blackjack, there is one station per game. In craps, there are three stations: Relief dealers will be considered in the computations to follow.

BJ Stations Required: How many dealers are needed to keep the required number of stations open and still allow for minute breaks after every 60 minutes on duty? If the employee works 60 minutes on and 20 minutes off, the cycle is 80 minutes. The following indicates the number of employees needed in each gaming pit for Monday: If the same method of calculation is applied to each day of the week, the following number of dealer shifts will be needed each week: Each dealer will work only five of every seven days; therefore, the following numbers of dealers are needed on the payroll to meet the demands of the casino: BJ Dice Baccarat What about vacations?

If only the numbers of dealers indicated above are provided, the casino will not be able to schedule the dealers time off for vacation. To allow for vacation, the average vacation time per employee per year must be determined. If it is assumed each employee will receive a twoweek vacation each year, the employee will work 50 weeks out of every Using the same methodology as in number 2 above, the number of dealers needed when vacation is factored in is determined as follows: To this point, the total number of dealers on payroll has been calculated so that each works: Only five days out of every seven, and c.

Receives a two-week vacation each year. The number of floorpersons on staff also needs to be determined. The number of floorpersons needed is calculated in the same manner as for dealers; however, eight hours is considered the cycle for a shift.

If floorpersons are scheduled for a one-hour break and two 20minute breaks each shift, then each employee will work out of every minutes eight hours in a shift multiplied by 60 minutes. Based on the number of BJ stations indicated in number 1 above and assuming one floor station is needed for every four BJ tables, the following stations are required: BJ Floorperson Stations Required: Using the same method demonstrated with the dealers, the number of floorperson shifts needed each week can be calculated as follows: If each employee is only to work five days of every seven, how many floorpersons are needed on the payroll?

Days Swing Grave Allowing for a two-week vacation for each, how many floorpersons are necessary? The formulas presented may not yield enough employees to staff the busiest day; therefore, the minimum number of employees is determined on the basis of the number required to staff the casino on the busiest day.

As an example of this, consider the following: Commonly, there may be between four and six different dealer starting times. Table 4. Each dealer works 60 minutes on and 20 minutes off. The opening of the tables should approximate the player demand. In this example, the casino has as few as 12 tables open in the morning, when demand is low, and 40 games open in the afternoon.

Using the Tables Open line, determine: Remember, each dealer is to work eight hours. Try to fill in the blank areas. Deemed financial institutions, every casino within the jurisdiction of the U.

In addition to stopping money laundering, it was hoped that the required reporting would provide the Internal Revenue Service with an increased means of identifying tax evaders. Before the inclusion of casinos, financial institutions were limited to the following: The classification of casinos as financial institutions was, to say the least, an unwelcome change.

Operators believed that the new requirements would discourage or severely curtail the extremely profitable high-end segment high rollers of the customer base. The casino industry initially argued strongly against the change, but it became evident after months of dialogue that nothing could be done about the impending reclassification.

Casinos would soon report under Title The regulators were successful in persuading the Secretary of the Treasury to allow each jurisdiction, if it so desired, to develop its own method of implementing the controls and reporting procedures necessary to comply with Title 31 requirements.

The final decision by the Department of the Treasury gave each gaming jurisdiction two options: Obtain an exemption from direct reporting to the Department of the Treasury by developing its own system of implementing, and monitoring for compliance, the reporting requirements; or 2.

Report directly to the Department of the Treasury subject to Title 31 of the Bank Secrecy Act, with the Department of Treasury responsible for monitoring compliance. Before it was implemented, Regulation 6A had to be reviewed and accepted by officials from the Department of the Treasury. Both Atlantic City and Puerto Rico opted for maintaining compliance with the specific requirements of Title In subsequent years, casinos in all other jurisdiction, including Illinois, Indiana, Iowa, Michigan, and Mississippi, along with the Native American casinos, have commenced operations under the currency transaction reporting requirements of Title This does not include exchanges of chips or tokens for cash, but does include exchanges of foreign currency for U.

The one exception is the issuance of a check for verified winnings. For example, a patron winning a large slot jackpot may receive his winnings by check. Issuing a check or wire transfer for winnings to a third party is prohibited. The check must be issued in the name of the winning patron.

This form is comparable to the form used to report currency transactions under Title 31 Form [formerly Form ]—see Fig. The MTL is used in all gaming areas and the casino cage. The date and time of the transaction 2. Under Regulation 6A. Transactions in which cash is received from a customer: Losing cash wager placed at a table game b. A cash wager placed at another gaming area such as keno, and the race and sports book. Chip or token download d. Marker payment i.

Front money deposit i. Transactions in which cash is paid out to a customer: Redemption of casino chips b. Payment of a winning wager such as a winning keno, race and sports book, or bingo ticket. Withdrawal of a front money deposit d. Customer cashes a check at the casino cage or makes a withdrawal against a consumer credit card in cash at the cage e. Customer receives cash from a wire transfer received by the casino g. Payment of winnings received through participation in a tournament such as a slot or poker tournament.

Other payments made to a customer, such as a marketing incentive or reimbursement for travel expenses. If the latter case, then it must be designated on the CTRC-N that the report was filed as a result of multiple transactions. In no case is a report ever filed as a result of combining cash-in transactions with cash-out transactions.

This rule applies to reports filed under both Regulation 6A and Title In this case, the casino is not allowed to cash out the chips and may also be required to report the transaction to the Nevada Gaming Control Board.

The customer is not only barred from this casino, but from any other casinos owned and operated i. The customer may be removed from the barred list by subsequently providing the required information. These logs are required in all departments responsible for the preparation of Currency Transaction Reports.

The MTL Fig. A description and, if known, the name of the patron The table number, if the transaction occurred in the pit The time, date, type, and amount Signature of the casino or cage personnel recording the entry These logs are maintained for a hour period, with a predetermined cutoff time that is selected by the individual casino.

After the end of the hour period, the MTLs for each gaming area and the casino cage are turned in to the accounting department for review and storage.

Every 24 hours, each department initiates a new MTL, and it is Figure 5. This means that only transactions of the same type, such as chip downloads, are aggregated together. The casino would not aggregate a chip download with a front money deposit or a marker payment. Under normal circumstances when the single visit rule is not in effect, a CTRC-N would not be required for the transactions described in the example.

The single visit rule basically represents the application of Title 31 rules that would be followed in casinos outside Nevada for aggregation of cash transactions. Front Money and Safekeeping Deposits The Regulation provides for unique ways of handling player deposits for front money or safekeeping. Each casino has two options when handling either type of deposit: Physically segregate the cash deposited in a designated location and return the same cash to the patron, or 2.

Record the number of bills in each denomination of the cash deposit. When the deposit is returned to the player, it is returned in the same denominations and number of bills of each denomination as in the original deposit. Since casino owners are forced by the Regulation to obtain the necessary information, the casino must bar the patron from gaming as described previously until he complies.

Each gaming area is required to maintain information relevant to any such patron. All personnel in gaming areas and security are expected to routinely review this log. Benefit of Choosing Hour Window The Regulation provides that each casino can determine when its hour day begins and ends. This has proven extremely beneficial in minimizing the effect on individual players. Transactions such as chip downloads, money play losses losing cash wagers , and marker payments are all considered to be separate transactions.

Regulation 6A and Title 31 were reluctantly accepted by both management and players. Since , the players have grown accustomed to Regulation 6A and, in the process, many have developed their own methods to avoid reporting. It is also important to note that the player need not be bothered if the casino has the necessary information on file.

Once a positive player identification is made for a report, subsequent reports can be made based on the prior identification as long as the player is known to the casino employee handling the transaction.

It is not necessary to inform the player that the report is being prepared. It is only necessary to inform the patron if the casino does not know who the player is and, consequently, must see identification. When Regulation 6A was first implemented, many casinos felt obligated to notify the player that a report was being prepared. Most casinos now simply prepare the report if the information is available.

Every casino knew what was expected of it and how to handle most situations. In contrast, Atlantic City and Puerto Rico had only a single-paragraph explanation contained in Title 31 to provide them with guidance on how to maintain compliance.

Casino Operations Management. 2ND Edition

Since , each casino in these jurisdictions has developed a system it believes provides for compliance with Title One additional difference between the jurisdictions is that betting of cash and pit marker redemptions are prohibited by regulation in both Atlantic City and Puerto Rico.

Monitoring Compliance with Regulation 6A Recognizing the need for a system of consistent and recurring compliance monitoring procedures, the Nevada Gaming Control Board issued Minimum Internal Control Standards MICS for Currency Transaction Reporting, which require the performance of procedures by both internal audit departments and independent accountants.

The MICS specify that internal audit personnel for the casino review established procedures in all casino departments subject to Regulation 6A by interviewing appropriate personnel in these areas on a quarterly basis. Testing of all types of documentation prepared pursuant to Regulation 6A is also required to be completed by internal audit personnel on at least an annual basis with the documentation tested being selected from each quarter.

An additional requirement, which serves to highlight the importance of Regulation 6A compliance for both the Nevada regulators and the Department of the Treasury, is the one asking that all exceptions discovered by the internal auditors be documented and forwarded to management, which is defined to include owners, the board of directors, and the department heads responsible for the exceptions.

The MICS procedures include four hours of unannounced observations per quarter of the casino cage, pit, and sports book areas, walk-throughs, testing of documentation, and review of training programs established by the casinos, in order to periodically communicate to casino personnel the requirements of Regulation 6A. The MICS indicate that the independent accountant procedures may be performed instead by qualified internal audit personnel as long as the independent accountants review the work of the internal auditors.

Depending on the casino, having the procedures performed by the internal auditors may provide a cost-effective alternative. These monitoring procedures have helped the casinos ensure the effectiveness of their compliance systems by providing frequent feedback to management and, at the same time, have provided independent assurance to the Nevada regulators that casinos are maintaining adequate compliance with Regulation 6A.

In these jurisdictions cash-in and cash-out transactions are aggregated separately for the purpose of reporting. Examples of cash-in include front money or safekeeping deposits as well as chip downloads in the pit. Most casino systems will provide the ability to generate a daily report that identifies any patrons whose aggregated cash transactions have exceeded the reporting threshold for which a report is required to be prepared and submitted by the casino.

These reports from the casino system may be used by the casino to ensure that all reportable transactions have been properly identified. One of the primary benefits of Regulation 6A for Nevada has been the ability to self-regulate compliance. The MTLs are generally prepared manually by casino personnel and capture many transactions that would not specifically be required to be accounted for under Title The exemption that has allowed the casino industry to operate under Regulation 6A in Nevada has been an ongoing source of discussion by representatives of the Department of the Treasury.

The first revisions to Regulation 6A became necessary in , based on changes to the Bank Secrecy Act. As a result of these changes, representatives of the Department of the Treasury worked closely with the Nevada regulators and industry personnel to arrive at modifications that would be agreeable to all interested parties.

At that time, there was discussion within Nevada as to whether the Regulation 6A exemption should be maintained or whether it was in the best interest of the casino industry to instead operate under Title It was decided that extending the exemption was best for all parties, and the changes became effective May 1, The following are among the more substantive changes that resulted in Training and compliance programs were required. Funds transfer requirements were addressed in detail.

Addition of the single visit rule, discussed previously in this chapter, whereby all cash-ins or all cash-outs are aggregated for a patron during a single continuous and uninterrupted appearance at a single casino area such as a gaming table or slot machine. Efforts to extend the Regulation 6A exemption began again in earnest toward the end of At the time of this writing in , discussions were still under way, and a potential elimination of Regulation 6A and a resulting move to Title 31 was still a real possibility.

A substantial change to Regulation 6A that had already resulted in was that the Suspicious Activity Reporting requirements were removed from Regulation 6A and compliance was required with the revised requirements of Title Involves funds derived from illegal activity or is intended or conducted in order to hide funds derived from illegal activity. Is intended to avoid or prevent the filing of a Currency Transaction Report. Has no business or apparent lawful purpose or is not the sort of transaction that the particular customer would normally be expected to conduct, and the casino knows of no reasonable explanation for the transaction after reviewing the available facts, including the possible purpose for the transaction.

Involves the use of a casino to facilitate criminal activity. Casinos have 30 calendar days after the date of the initial detection of the transaction to file the SARC, but may extend this by an additional 30 days to identify a suspect maximum of 60 days to file. Some guidance was previously provided by FinCEN in the form of possible scenarios that could be considered to be suspicious. Ultimately, a casino should have the best knowledge of its business and customers and, as a result, should be able to make the most informed determination of whether a transaction is truly suspicious.

Consistency of filing within a particular casino company with multiple casino operations, as well as consistency of filing across similar unaffiliated casino operations, will likely be a factor in the evaluation and determination of the level of compliance. Figure 5. However, rarely is a similar focus maintained on the currency transaction reporting requirements that pertain to the nongaming areas within the operation.

Title 26 applies to areas within the operation such as the hotel, catering, banquets, retail, and restaurants. The purpose of Title 26 is to identify and report large cash transactions on a Form see Fig. Money laundering is also a primary concern of the Department of the Treasury in regard to transactions in nongaming operations. The primary ways in which the requirements of Title 26 differ from those of Title 31 are as follows: The aggregation requirements of Title 26 pertain to a month period instead of a gaming day.

The definition of cash is broader under Title 26 than the definition used under Title Cash does not include a personal check under Title Title 26 requires the filing of a written statement to each person for whom a Form was filed during the year. The statement must identify the business and be filed by January 31 following the calendar year the report was completed.

Publication , which is available from the Internal Revenue Service, provides guidance on the filing of Form Includes Puerto Rico. Nevada only. Generally, only aggregate same-type transactions within one defined area within the casino e.

Multiple Transaction Log required. Suspicious Activity Reporting Effective March 25, , all casinos in United States including Nevada must comply with the same requirements. Effective March 25, , all casinos in United States including Nevada must comply with the same requirements. Regulation 6A casino operation to provide training to employees in areas likely to encounter the reporting requirements of Title Willfully failing to file a Form may also result in additional fines and criminal penalties.

The casino cage maintains an accountability of the cash, chips, and tokens that are used to fund the operations of the casino. When additional chips are needed for the table games, the cage is the source of these chips. The cage also provides the funds to conduct transactions with casino customers.

The casino cage is composed of customer windows, which are normally established on an imprest basis i. The imprest amount for a window varies according to the size and needs of the operation. The number of windows in the cage depends on the relative size of the cage and the number of customers present in the casino during peak times.

The cage also contains a fill bank, which may also operate on an imprest basis and maintains a substantial inventory of chips and tokens used exclusively for conducting transactions with employees of the casino. Fill bank transactions consist primarily of chip exchanges with the table games, which are in the form of fills and credits. The fill bank also transfers chips to the cashier windows to replenish depleted inventories and accepts the excess chips cashiers receive through customer transactions such as chip redemptions.

All exchanges of chips are documented by the fill bank cashier to enable the inventory of the fill bank to be reconciled at any point in time. The fill bank replenishes its inventory through exchanges with the main bank.

The casino cage in many casinos is also responsible for accounting for the inventories of the coin room and the slot cashier banks. In this arrangement, cage personnel are responsible for verifying the accuracy of the coin room inventory on a shift-by-shift basis, since the coin room balance is a component of the cage accountability.

The marker bank is an additional area within the main bank and is responsible for maintaining inventories of issued markers transferred in from the table games, front money, safekeeping deposits, and other items such as returned checks and airfare disbursements.

In smaller casinos, the fill bank and main bank functions may be combined into one area. The main bank may also serve as the cashier for the hotel front desk, restaurants, bars, and retail outlets by issuing banks to hotel cashiers coming on shift and accepting the deposit of excess funds received by hotel cashiers during the course of their shifts. The cage operates on a hour basis in the same manner as the casino. An inventory of all items comprising the cage accountability is performed for each shift.

The windows, fill bank, and main bank are counted down and verified by both the outgoing shift and incoming shift personnel. The balances are carefully checked, since any differences overages or shortages may result in disciplinary action being taken against the employee responsible for the difference. The results of these procedures are documented on an accountability sheet, which shows all balances the cage is responsible for by respective area.

All transactions that result in increases or decreases in the cage accountability during the shift are recorded on a shift summary. Examples of these items include airfare disbursements, coin coupons, and paidouts. Documents supporting these transactions are placed in an envelope and attached to the completed shift summary. The shift summary, supporting documentation, and the accountability sheet are sent to the accounting department daily to be audited.

Figures 6. Most casinos today use computer systems designed to document cage transactions and facilitate the reconciliation of inventory balances at shift end. Unlike institutions offering consumer credit, casinos do not charge interest for the use of their funds; however, casino credit should not be considered interest-free. The credit authorized will be taken away by the casino if the player does not make use of it. In effect, the requirement that the credit be used for gambling serves the same purpose as charging interest: The casino does not require the player to lose, but the player must gamble.

Credit is granted to a player by the casino in order to increase play and, it is hoped, the amount won by the casino. The willingness to grant credit alone does not ensure that players of this caliber can be attracted to the casino. Casino customers who gamble on credit are normally upscale clientele who desire amenities such as gourmet restaurants and fine room accommodations.

As a result, the physical facilities, as well as the marketing plan used to attract these customers, become crucial if the casino is to be successful in marketing to such individuals. Types of Casino Credit Credit is considered to be extended anytime the casino is at risk of losing any or all of the funds advanced to a particular player.

One form of casino credit is check-cashing privileges. Check-cashing privileges permit the customer to cash either personal or business checks at the casino cage. The casino then deposits these checks in its bank account on the next business day. In recent years, casinos have also experienced increasing numbers of forged and counterfeit checks.

This has resulted in many casinos using check approval programs such as Telecheck to transfer much of the risk of loss to a third-party service. This courtesy is generally limited to premium customers who are repaying credit previously extended; customarily, the casino, depending on policy, will hold the checks for 30 to 45 days before depositing them for collection.

Front Money Players often come to the casino and bring cash to deposit at the casino cage. The deposits are referred to as safekeeping if the player intends only for the funds to be held by the casino cage for security and convenience. Front money deposits enable the player to draw upon the funds by signing markers at the table games up to the amount of the deposit.

Credit Granting Procedures A player wishing to establish casino credit must first fill out an application Fig. The credit application can be accepted by any cage cashier, credit executive, or casino marketing executive. The application can also be mailed, handled by telephone, or sent via facsimile to the casino. When taking an application over the phone, the casino employee simply takes the information and completes the application based on the information communicated.

In this instance, the player must still appear at the casino to activate the credit line. To be granted credit, the customer must Fig. Have at least one bank reference preferably a U. Have a checking account 3. Be the signer on the account Credit applications vary slightly from casino to casino; however, every application contains at least the following information relevant to the customer: If the application is not taken in person, the identification is verified and photocopied prior to any credit being issued.

Please return the completed form by mail or fax; the postage is prepaid for your convenience. Please contact us should you have any questions.

This authorization applies to both my business and personal accounts. I will be responsible for any fees charged. The confidentiality of the information provided will be maintained except when disclosure of this information is required by applicable law.

Is credit application complete? Is credit application legible? How much credit is requested? Has gaming report been obtained from Central? Is customer reported as 4 in 14? Yes see credit mgr. Has consumer credit report been obtained? Is consumer credit report clear? Yes go to 9 No see credit mgr. Does customer have credit elsewhere? Yes go to 10 No go to 23 How long established with Central? Has in-transit been requested? Yes go to 12 Does customer owe?

No go to 13 Is it after banking hours? Yes go to 21 No go to 14 Has bank check been obtained? Yes go to 15 Can customer sign alone? Yes go to 16 Has account been open at least 6 months? Yes go to 17 Does average balance support the request? Yes go to 18 No see credit mgr. Does customer have any derogs at Central? Yes go to 19 No go to 21 Are the derogs: How recent?

How much? Is any bank info available through Central? Yes go to 27 No see credit mgr. Yes go to 24 Yes go to 25 Yes go to 26 No see credit mgr. It is time to make a decision. Key Questions: Application is not complete until customer signs form.

Figure 6. Many casinos use credit agencies for obtaining credit and bank checks on a player. If a casino were to contact the bank directly, the request for information could create concerns for the officers of the bank. Regardless of who makes the contact or how the bank is contacted, certain information is requested: Opening Date The opening date of the account is very important.

A new account could indicate problems for the casino. The average balance will be a range and, normally, is based on the last three to six months. Savings and loans occasionally use the last six months in computing the average. The applicant may be approved for credit based on qualifying average balances in either a personal or business account.

In these instances, the bank is asked if a check in the amount of the credit requested would clear today. The casino then knows a minimum amount in the account as well as the opening date of the account. Signers on the Account Since a signed marker is nothing more than a counter check, the casino must have the signatures necessary to cash the check. If two signatures are required, for example, a husband and wife or two business partners, the instrument is of no use to the casino.

Is the Account Satisfactory? When a bank reports that an account is satisfactory, it means that no bad checks have been written during the past year. If the customer has a history of writing checks for which insufficient funds are on deposit in the account, the bank will report the account as being unsatisfactory.

The bank information is the primary source available to establish credit for someone who has no prior history of casino credit. The average balance, current balance, and the amount the customer requests are the key determinants. Central Credit that provides instant information on the applicant. Casinos around the world have the option of subscribing to the services offered by Central Credit.

Central Credit also reports any derogatory derogs information reported on the customer. The primary concerns of the casino are 1 outstanding balances at other casinos and 2 any derogatory information. The gaming report Fig.

In addition to payment and credit limit history, the gaming report will include any reported bank information. The shortcoming of the gaming report is that the information is not necessarily up-to-date. The intransit report Fig.

The shortcomings of the intransit report are that it takes time for Central Credit to contact each casino and that much of the derogatory information available in the gaming report is not included. From the Central Credit sample reports, the inquiring casino can determine that Mr.

The casino can further determine that Mr. At the time the Central Credit reports were requested April 30, , Mr. Central Credit will not provide any information until the customer is established at the casino requesting the information. Establishing an applicant puts Central Credit on notice that the inquiring casino is claiming the applicant as one of its customers. Derogs Derog is short for derogatory information. If any subscribing casino has had difficulty collecting from a credit customer, this derogatory information will be indicated in the Central Credit system.

Derogs include insufficient funds NSF , no account, slow pay, account closed, and stop payment. If a customer is classified 4 in 14, the casino will almost always turn down a request for credit. Preferred Customers Preferred customers are those whose credit information is treated as confidential or preferred by the casino. First Est: D P Last Est: D P Last Updated: If a gaming or intransit report is requested, the only information provided is that the customer does have credit. It is not unusual for one casino to consider a customer preferred while a second casino does not and releases pertinent credit information to Central Credit.

The only way a casino can obtain information on a preferred customer is for an executive at the inquiring casino to directly contact an executive at the casino where the customer is a preferred customer. In this manner, the executive at the casino receiving the inquiry may decide on the amount of information, if any, to provide to the inquiring casino.

Disposition refers to how the customer plans to pay any monies owed the casino. Disposition methods may vary from customer to customer. The following are examples of disposition methods: Customer will pay within 30 days of last marker. Customer will pay within 30 days. The card shown in Fig. The Credit Decision and Setting Limits Applicants for consumer credit must prove that they are deserving of the loan.

To be denied casino credit, applicants must have something in their report to indicate that the loan is not deserved. Table 6. In the past, national consumer credit reporting agencies were not checked by casinos before issuing credit; however, it is becoming a policy at many of the larger casinos to contact agencies like TRW for a report on any applicant who does not have a record with Central Credit.

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The ability to pay will also be influenced by: The information obtained is evaluated subjectively by the credit executive, and room exists for interpretation regarding the importance of the information. The casino executive has two primary sources of information in determining the propensity to play: The criteria used to determine this information, as well as the methodology used to capture the information into the computer system are discussed in detail in Chapter 12, on player rating systems.

Highest action indicates the largest amount the customer has ever left owing the casino. Last action merely indicates the last time the customer played. Highest action indicates how much the applicant left owing, not how much was bet. Setting Limits The applicant is asked how much credit he or she is seeking at the time the application is prepared.

After reviewing the application, the credit executive will either approve, reduce the amount requested, or deny the application altogether. The limit protects both the applicant and the casino. Conventional thinking in the gaming industry dictates that the customer knows best how much she can afford to lose and repay. If credit limits are set only in amounts the player has the resources to repay, the casino is repaid for credit extended and, most likely, the player will return to gamble again in the future.

If a player loses more than she can afford to repay, the casino will lose both the amount owed as well as any future business from the customer. Front Money Losses Often, players will come to the casino with front money, lose their front money deposit, and then ask for casino credit.

These situations do not lend themselves to the routine bank check since the decision must be made immediately. If the applicant has a record with Central Credit, the decision becomes less difficult. If the applicant cannot be located in Central Credit, the general rule is to advance credit in the amount of the front money lost. This policy may vary widely from credit executive to credit executive even within the same casino.

On the other hand, temporary lines are set on a trip-by-trip basis. Reasons for temporary lines include: The customer has not been in the property for several months and the bank information is outdated. A temporary line may be given to the player in order to provide an additional opportunity for improved performance.

An in-house credit executive may know the customer from prior experience and believe that he can get the customer to pay despite a negative Central Credit report. Changing Credit Limits Occasionally, a customer will request that her limit be increased.

Unfortunately, this request most often occurs during a period of play when the customer is experiencing heavy losses and believes that the losses can be recovered by getting more credit to fund the additional play. Limit increases are a function of management philosophy. If management wants to beat the customer for the maximum amount possible, the customer will be given as much additional credit as desired.

Examples of this type have received increased attention from the media, gaming regulators, and, in some cases, the judicial system. When the player does request more money, the credit executive is secure in temporarily extending the limit within these guidelines. Limit increases should occur either between trips or at the beginning of a trip when the player is thinking clearly and is not influenced by other considerations.

Any temporary limit is a TTO. Players often have difficulty understanding this concept. With credit card limits, the cardholder has access to any amounts of the authorized limit remaining as long as the payments are current.

This is not the case with casino credit. If the player returns to the casino before the day due date, all outstanding balances are expected to be paid before the limit is reinstated and any additional credit is issued.

Cuff-on-Cuff As with many rules, there are exceptions. Credit executives need to be aware of these players.

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Generally, this information is entered into the player rating system and, when this does occur, a credit executive will confront the player and explain the casino credit policy and expectations to the player.

Credit Authorizers The trend in casinos today is to restrict the number of individuals who can authorize credit. Senate Bill became law on May 17, Unfortunately, some casino customers are not as quick to pay as they are to lose at the tables.

Consequently, most large casinos maintain a staff of collectors who monitor all casino credit and, if necessary, attempt to collect any outstanding balances.

The collection department continually reviews credit customers who are in-house playing at the casino. Once it is determined that a player with an outstanding balance has ended her trip and departed the casino, the collection department goes to work. The first step involves reviewing any special instructions on the credit application.

For instance, the customer may have requested that no statement be sent. If this is the case, the collector would patiently wait until the deadline imposed by the application arrives. If the applicant has not specified otherwise, a statement sometimes called a confirmation is mailed to the customer at the location specified home or business within one week of departure from the casino.

In most cases, the player sends a check to the casino as payment on the outstanding marker balance. The original marker will be returned to the player once the balance has been completely repaid. If the marker is unpaid at the end of the agreed-upon period, the collector will attempt to phone the customer to determine why the balance has not been paid.

Reasons for the delinquency in payment include the check is in the mail or the customer needs more time to arrange for additional funds to pay off the balance. After evaluating the reason for the delinquency, the collector will specify terms under which the remaining balance will be paid.

If the in-house collectors have exhausted all efforts and believe that an account is uncollectible, the account is often turned over to an outside collection bureau or attorney. Settlements and Write-Offs In some situations, casinos will agree to a settlement with a player in order to induce payment of a portion of the outstanding balance.

The casino will record the terms of the settlement in a written document, which requires the written approval of the Credit Committee.

Terms recorded on the settlement form include: As indicated, the uncollected amount that exists as a result of a settlement is a write-off. The ability to approve write-offs is generally restricted and may include individuals in the following positions: The original markers supporting the amount written off will normally be transferred to an area in the accounting department that is secured to prevent access. Not only were table games the most popular, but they were also the most profitable.

On the Las Vegas Strip, where table games once ruled, slots now dominate. The comparison is even more dramatic if you were to look at the departmental profits. In the early days of gaming, slots were merely a diversion and were usually placed around the perimeter of the casino.

The Meadows Supper Club. California state officials became outraged by his operation and in The Cornero brothers claimed that they had built the Meadows with the understanding that the city would give them a monopoly on prostitution. Only 20 feet wide at first.

The hotel burned to the ground in after firemen refused to fight the fire because the Club was outside the city limits Las Vegas Review Journal. The casino. After leaving Las Vegas. Every week. No expense was spared in building the most luxurious casino in Nevada. The Club eventually went bankrupt in and was sold within a year to a builder from California Nevadan Magazine. Tony Cornero operated a gambling ship anchored three miles off the shore of Santa Monica.

Unfortunately for Cornero. During the prohibition years. This was to change when in Raymond Smith and his son Harold came to Nevada. A mouse was released from a hole in the center of the wheel and the winning number was determined by the hole to which the mouse ran.

Hull could not help noticing the large number of cars that passed him while he was waiting for a mechanic to arrive. He was also the first to introduce mouse roulette. At one point. The amendment legalizing wagering on these events did not come until ten years later. Pappy Smith was also the first casino operator to hire women dealers. He was a great visionary and realized that proper marketing could lead to substantial profits.

Just two years later. Harrah was the first to introduce corporate management philosophies to the gaming industry. Among these was his innovation of placing the casino directly adjacent to the street. Bill Harrah. Legend has it that on a hot summer day in During this same period. At the time of his death in the mids.

Clark County. Bugsy 5 traordinary promoter. On October During the initial opening period. Brian Donlevy. But since the rooms were not yet complete. William Holden. Trans-America wire service. Ava Gardner. Lucille Ball. Once familiar with Las Vegas gambling. The hotel was named after Hollywood starlet Virginia Hill. In spite of all the hoopla. Bugsy and his gang gained a foothold in the legal casinos of Las Vegas Vallen. The Flamingo was crowded with customers on opening night. December With monopoly control of the wire service.

Unfortunately for Bugsy. Two nights later. To satisfy this perceived gap in the market. Looking back. Convinced he was skimming casino proceeds.

The developer of record was the Nevada Projects Corporation. On Thursday. The casino was reopened on March George Raft. Xavier Cugat. The opening did make the newspaper. Bugsy initially bought into and subsequently sold the El Cortez. The download was not without some controversy.

Howard Hughes 7 In retrospect. The 2. Within a period of a little more than one year. Howard Hughes was able to move swiftly through the licensing process and continue to expand his ownership in the gaming industry. After determining that the Department of Justice had no jurisdiction in the matter. Before coming to Las Vegas. In September His entry into gambling legitimized the industry and gave it a much-needed perception of respectability.

With the assistance of Governor Paul Laxalt. Department of Justice intervened when Hughes attempted to download the Stardust. In July Fearing dominance in the industry was detrimental to free competition. He was a well-known and respected businessman. The act was made retroactive to July 1. The mega-resorts also feature large numbers of hotel rooms currently as many as 5. The act opened the door for other public corporations to move with greater ease into the gaming industry.

The Mirage. The building boom that began with Bugsy Siegel has continued with only slight interruptions. New York-New York. The last few years in Las Vegas have seen the construction of themed mega-resorts. Coney Island. With public corporations. Other tourist attractions include the Eiffel Tower Paris. MGM Grand. The Corporate Gaming Act allowed publicly traded corporations to own casinos without requiring every single stockholder to be licensed.

These properties. Mandalay Bay. Prior to the passage of this act. Tourists visiting the Las Vegas Strip today can stay at the five-star Bellagio featuring a man-made lake. Wynn today is the mastermind behind Wynn Resort.

Other projects under construction include Wynn Resort. A foot man-made mountain with a five-story waterfall and an art gallery featuring works by Picasso and Van Gogh will also highlight the property.

The new mega-resort will include approximately 2. Wynn as one of the modern-day innovators in the gaming industry. Wynn is credited by many in the industry with transforming Las Vegas into a world-class resort destination. These projects will further enhance the image of Las Vegas as a vacation destination.

Wynn Resort should serve to further establish Mr. The proceeds from this sale helped to fund the construction of The Mirage. The property was one of the first to fully integrate a clear theme throughout the operation and include a signature entertainment feature in the volcano provided free to the public as a marketing hook. Perhaps no one individual has acted as a greater agent of change in the face of the gaming industry over the past decade than Steve Wynn.

Mohegan Sun is currently one of the largest casino resort destinations in the world. Kerzner turned his attention to international development. Paradise Island—themed resort. Sun International Hotels. He is acknowledged as the architect of the casino-resort industry in subSaharan Africa and has contributed significantly to the enormous success that the Indian Ocean island of Mauritius has achieved as a quality tourist destination.

Both of these properties opened in and represent prime examples of the imagination. One of Mr. In October With the completion in of the Lost City and its internationally acclaimed luxury hotel. Kerzner has gained international acclaim for his imaginatively designed. The property has a pirate theme.

The ship battle is complete with actors. Treasure Island. In May Sol Kerzner was born August From to The Paradise Island properties. Kerzner opened the Mohegan Sun gaming resort in Connecticut to a crowd of The 1. By the company was operating 30 luxury hotels with more than 5.

Paradise Island. Entertainment at Atlantis also features a world-class casino. These covered a broad spectrum of city and resort establishment complexes. Having acquired control of the hotel-casino interests of Southern Sun Hotels. Cheating and operating without a license were illegal. The licensing system which is in effect in the state has not resulted in excluding undesirables from the state. Anyone seeking a gaming license had to be approved by a local fivemember board made up of the sheriff.

Local gaming control and enforcement lasted until A requirement was also established at this time providing for casino operators to obtain a gaming license from the state as well as the local authorities. Estes Kefauver In Once the tax on gross gaming win was established. Nevada Gaming Control Whether in Nevada. Many of the licensed operators were either members of or had connections with organized crime. The organizational chart shown in Fig. This is accomplished by maintaining strict control over the financial practices of the licensee.

To ensure that the industry is free from corruption and the involvement of organized crime. In Nevada. The Gaming Control Act relieved the Tax Commission of any authority concerning gaming and established a Gaming Commission that was to act in unison with the Gaming Control Board to govern the industry.

Atlantic City. After completing its investigation. To ensure that all taxes owed are properly paid. To ensure that gaming is conducted honestly. To accomplish this. This is accomplished by preventing unsavory or unsuitable persons from having any direct or indirect involvement in gaming. The publicity of the hearings brought national prominence to Kefauver.

This approach to licensing lasted until In testimony before the committee. The Board is made up of three members who are. No more than three Commission members are from the same political party. In selecting the members of the Commission. None of the Commission members is actively engaged in or has a direct interest in gaming. Interestingly enough. History of Gaming Control in Nevada 15 Figure 2. The five members of the Commission are appointed by the governor to four-year terms.

The third member must have full training and experience in the field of investigations. Each agent has police officer authority and routinely conducts undercover observations of gaming licensees. One member must be a certified public accountant with five years of experience in general accounting.

Investigative agents with the Board fall into either the background or financial category Vallen. The Gaming Control Act dictates to the governor whom he cannot choose for the Commission and. Investigates player disputes. One distinct difference between the Board and the Commission is that the Board members are full-time rather than part-time. The various departments of the Board are assigned to those members with the necessary functional skills. All agents hold accounting degrees.

Audit The Audit Division is the largest division of the Board. Reviews all existing and new work card permits. In completing the background investigation. The applicant bears the entire cost of the investigation.

Individuals selected to be Board members must be proficient in certain areas of expertise. Inspects and approves gaming tokens. The chairman of the Board must have five years of sound administrative experience. Divisions of the Board Investigations When an individual submits an application for a gaming license.

Board personnel will contact law enforcement agencies where the applicant has lived. Most often. Reviews surveillance systems. Arrests anyone attempting to cheat the casino. Enforcement The Enforcement Division serves as the law enforcement arm of the Board. Every three years.

Gaming Policy Committee The Gaming Policy Committee was established in to give the governor a voice in policymaking. The Audit Division also reviews and evaluates the internal control system of each licensee. The Committee meets on an ad hoc basis at the request of the governor and has not been convened since History of Gaming Control in Nevada 17 Audit Division staff to determine whether the proper gaming and entertainment taxes were reported and whether compliance has been maintained with gaming regulations.

The nine-member Committee is chaired by the governor. The exclusive purpose of the Committee is to discuss gaming policy. Attorney General In addition to the divisions listed. The primary responsibility of the attorneys is to serve as legal counsel to the Board and the Commission.

The expertise of the Committee members should yield sound advice concerning policy. Nevada gaming licenses are either restricted or nonrestricted. Anyone seeking a gaming license must first prepare an application and submit it to Applicant Services.

Any of these rights can be summarily taken away by the Board and the Commission Goodwin. Restricted If the applicant chooses to operate no more than 15 slots and no table or poker games. Approximately two weeks later. All companies. After the investigation. The application is submitted to the Board. If the Board unanimously recommends licensing or this vote is split.

At the end of their questioning. Two other types of gaming licenses qualify as nonrestricted: The applicant then prepays this estimated cost. Classifications of Nevada State Gaming Licenses The type of casino the applicant chooses to operate determines the type of license that is necessary.

Once the application is prepared. As mentioned earlier. The recommendation made by the Board determines what the Commission must do if the applicant is to be licensed.

If the Board unanimously recommends against licensing. The Board then makes a recommendation as to the suitability of the applicant. In addition to the state license. The applicant has adequate business competence and experience for the role for which application is made. In the past. Whenever the state and local room requirements differ.

Finding of Suitability. What the Commission Is Looking for in an Applicant Any approval by the Commission will not be granted unless the Commission is satisfied that: Any casino operation classified as nonrestricted in Reno must have at least hotel rooms before a local gaming license will be issued.

In all cases. Funding for the operation is adequate and from a suitable source. For example. If an applicant wishes to open a race book or sports pool only. The applicant is a person of good character. Local jurisdictions have their own requirements before issuing a license.

Under current requirements. In Clark County. Key Employee Licensing. If the local room requirement is greater than the state requirement. That is. Regulation 3. The following classes of individuals are those most likely to be called forward for a finding of suitability: Twice each year. In these cases. Any executive. The report includes the following categories of employees who are actively engaged in the administration or supervision of the casino operation: Mortgage holders Landlords Lessors of property and equipment Lenders Junket representatives Those doing business on the premises Those providing goods or services Key Employee Licensing When three or more members of the Commission believe that the public interest would best be served by having a key employee licensed.

The work permit generally provides a photograph of the employee and must be in the possession of the employee while on duty. Work permits are issued by state or local authorities in most jurisdictions.

Any person who individually or in conjunction with a group formulates management policy As you can see. Any individuals who can enter into a contractual arrangement that is binding on the licensee and is reportable under Regulation 8. This regulation shall not apply to the playing of or wagering on poker or panguingui. All individuals with the authority to manage the following departments: Shall the Constitution be amended.

Atlantic City Gaming 21 9. No officer. Key employees are restricted from gambling in the casinos where they work. Any individual who has been represented to the Board or Commission by the licensee as being important to the operation of the gaming establishment Work Permits A work permit of some form is required in most gaming jurisdictions.

When the Casino Control Act was first passed. As in Nevada. The Commission is composed of five members appointed by the governor to five-year terms. Puerto Rico and Great Britain were visited to determine the best control model. In the year before the gambling referendum was presented to the voters. The legislators later decided that the workload and responsibility of the Commission was too great for part-time members.

Atlantic City: After these different models of control were reviewed. The duties of the Commission are to 1 enact all gaming regulations and 2 serve as the final authority on all licensing and disciplinary matters. The introduction of the gambling bill had as its main objective the restoration of Atlantic City. Playboy was not issued a permanent casino license.

In this case. Reviews and audits of casino operations 3. Hefner was not willing to sell his interest in Playboy. The investigation of all applicants for a gaming license. Prosecution of licensee violators before the Commission 5. Enforcement of the Casino Control Act and its regulations 4. As the result of adverse background investigations. Atlantic City Gaming 23 and agents at all times during the operation of any casino.

Once the governor decides not to run or is defeated. Approval for employee licensing requires only a simple majority. In New Jersey. Provisions for the continuous presence of Commission personnel represented a significant departure from the gaming control model employed by Nevada. Gaming has long been a part of tribal culture.

Many of the traditional games are still played today at Indian ceremonies and celebrations. In exchange for land. Three categories of employees must be licensed: Key License category 1.

The tribes have always believed that they have the right to conduct gaming on Indian lands. Licensing In addition to the companies. In California v. Before the Pilgrims set foot on Plymouth Rock. On the hotel side. Atlantic City offers only one type of gaming license. Key License Includes casino and hotel policymakers. Cabazon Gaming License category 2a. Gaming License Applies to those directly involved in the operation of the gambling: Nongaming License Applies to those who work in a casino but are not directly involved in the play of the games.

North America was populated by hundreds of Indian tribes. The concept of owning land came with the European settlers. National Indian Gaming Commission. Table 2. Regulatory control is vested exclusively in tribal governments. Each member is appointed to a three-year term and must pass a rigorous background investigation by the U. The Act specifically excludes slot machines and electronic facsimiles of any game of chance from the definition of Class II games. Games commonly played at casinos.

Class II gaming also includes nonbanked card games. The U. IGRA established three classes of games with specific controls for each: Before appointment. Tribal governments are responsible for regulating Class II gaming with Commission oversight. Attorney General. Tribes retain their authority to conduct. The Act established the judicial framework that governs Indian gaming.

Powers of the Commission a Budget approval. The NIGC shall have the power. Class III is often referred to as casino-style gaming. To promote tribal economic development. The Chairman must approve this ordinance. Annual audits are conducted by outside agencies. The ordinance must provide that: To provide the general welfare of the Indian tribe and its members.

Background investigations are conducted on primary management officials and key employees of the gaming enterprise and b. Net revenues from gaming are not to be used for purposes other than: There is a licensing system that ensures that: To help fund operations of local government agencies. Indian Gaming 29 8 May hold such hearings. Powers of the Chairman a The Chairman. All contracts for supplies. Before a tribe can offer any Class II gaming. To donate to charitable organizations or e.

The funding of the tribal government operations or programs. The construction and maintenance of the gaming facility and the operation of the gaming is conducted in a manner that protects the environment. Include a means of licensing primary management officials and key employees of the gaming enterprise. That plan has been approved by the Secretary of the Interior. The compact will address: The form of gaming is permitted within the state where the Indian lands are located.

The gaming is authorized by an ordinance or resolution that 2. The interests of minors and other legal incompetents entitled to receive payments are protected and preserved. The allocation of criminal and civil jurisdiction between the state and Indian tribe necessary for enforcement of such laws and regulations.

The disbursements are subject to federal taxation. The application of criminal and civil laws and regulations of the Indian tribe or the state that are directly related to the licensing and regulation of the gaming.

The assessment by the state of any monies in such amounts necessary to defray the cost of regulating the gaming. Remedies for breach of contract. The taxation of the Indian tribe in amounts comparable to those assessed by the state for comparable activities.

Class III gaming is lawful on Indian lands if: Notification by the tribe to the Commission of the results of such background check before the issuance of any such license. A standard whereby any person whose prior activities. Before taking effect. The tribe has prepared a plan to allocate revenues. Net revenues from any Class II gaming operation conducted or licensed by the tribe may be used to make per capita payments to members of the Indian tribe.

Is adopted by the governing body of the tribe that has jurisdiction over such lands. Is conducted in accordance with a tribal-state compact entered into by the Indian tribe and the state.

If the chairman is satisfied with the capital investment and income projections. Any other subjects directly related to the operation of the gaming facility. Class III management contracts are subject to the following: Standards for operation. Commission Funding As of Indian Gaming 31 6. If a public corporation. Exceptions to this date are: Indian Gaming Facts from http: Federal law makes it a crime punishable by up to ten years in prison to steal. Respectfully submitted.

It has been strenuously argued that the gambling business is in an entirely different category from what we may. Approximately two years of operation under Senate Bill No. This levy lasted for 14 years until March Carville Governor This gross win tax was in addition to the table tax already in place. It is for these reasons that I have permitted Senate Bill No. The governor.

Senate Bill imposes on the gambling business a type of tax which the State of Nevada has avoided in the past as a matter of policy. I feel. Present guesses may be supplanted then by definite information. NRS Once the gross gaming win is calculated.

When a settlement occurs. The tax is calculated as follows: Compromise a dispute 3. Repayment of credit for premium players may not occur for an extended period of time because of the large dollar amounts involved. Caesars Palace. One thing that premium players generally have in common is that they play on credit. If the player wins. A cash method of accounting is used. Induce partial payment 2.

Credit instruments are often settled to: In a situation where records supporting taxable gaming revenue cannot be evidenced by the licensee. Failure by a casino licensee to maintain records as required may be determined by the chairman to be following an unsuitable method of operation. Regulation 6 also requires each casino licensee to establish administrative and accounting procedures providing for control over the internal.

Regulation 6 requires each nonrestricted licensee to maintain detailed records pertaining to any revenue subject to gaming taxes or fees for a period of at least five years. These circumstances include: A casino in Nevada can afford to be more daring in issuing credit since taxes are not generally payable on any uncollected amounts. The Statute also provides certain exemptions related to slot machines.

Any amount won by the casino over and above this theoretical win amount is only held in escrow by the casino. It is not uncommon. Nevada's gaming regulators adopted Regulation 6. Internal Control Systems 39 arrangements of this type also result.

One of its primary objectives was to increase assurance that casino licensees were properly paying the required amount of gaming taxes. Regardless of how much the player loses. The chief financial officer and chief executive officer or licensed owner must submit a signed letter attesting to the system's compliance with the requirements of Regulation 6.

The MICS established specific control procedures that were required to be in place within the operation of each nonrestricted licensee.

Access to assets is through specific authorization by management. The report must also include responses from licensee management addressing any items of apparent noncompliance noted. Financial records are accurate and reliable. The written system of internal controls the system is lengthy and covers every department subject to gaming or entertainment tax. The casino licensee is required by Regulation 6 to submit a written system of internal controls that describe the administrative and accounting procedures established by the licensee.

The document must address: The procedures must be designed in a manner to reasonably ensure the following: The licensee is required.

Licensees were required.

Slot Performance Analysis: An Essential Resource for Casino Operations Management

Assets are safeguarded. MICS were established for the following areas: Transactions are properly recorded to facilitate reporting of gaming revenue and taxes. Adequate segregation of functions. Alternative procedures that provide adequate control may be approved by the chairman based on a written request for a variance by the licensee.

Transactions are properly authorized by management. Asset accountability is periodically compared with actual assets and discrepancies are investigated. Table 3. New Jersey regulators also require nonrestricted gaming licensees to submit a system of internal controls.

MICS were established for electronic data processing. As part of this revision. During and early Front-line employees need technical skills to fulfill their position responsibilities. The mission of this chapter is to present and discuss the organizational structure of a typical casino and hotel along with descriptions of the responsibilities of a number of the key positions within the operation.

The reporting relationships and the assignment of responsibilities may also vary. The management pyramid Fig. The chapter also provides a discussion of how to determine the number of employees needed to staff these key positions. Variations based on the size of the operation. At the bottom of the chart are the front-line employees. As employees move up within the organizational structure. Although every department and position is equally important to the success of the organization.

Toward the top of the chart are the management positions. The experience and organization of the management team have a direct impact on the profitability of the casino operation. The departments are divided along functional lines to provide for specialization as well as separation of responsibilities for accountability and control.

Although at first glance there might appear to be some benefits to aligning the. The vice presidents of security. These variations are too numerous to be addressed in this chapter. The typical organization starts with the president and branches out. Casino Organizational Structure 45 Figure 4.

This individual is not only a check and balance on the other operating departments. The re-. The vice president of finance is a key position in any casino organization. The following are brief position descriptions for many of the key positions indicated in the organizational chart presented Fig. Depending on the ownership structure of the casino.

The director of surveillance and his or her staff are a key part of the protection of the gaming operation and its assets. This position may report to either cage or casino supervisory personnel. The following are brief descriptions for many of the key positions indicated in the organizational chart presented Fig. Also responsible for compliance with house rules and rating player action. Supervises the dealers at the assigned tables. The person in this position reports to representatives of the owners.

Direct reports normally include accounting.

Supervises the pit managers and all other table games personnel during the shift. Vice President of Human Resources—Responsible for employment. Gaming and gaming compliance are two critical areas of responsibility for this individual. Vice President of Casino Operations—Responsible for the overall operation of the casino. Vice President of Finance—Responsible for all financial activities for the operation. Vice President of Security—Responsible for surveillance. Supervises the floorpersons and dealers within the pit and is also responsible for customer relations and games protection.

Supervises the shift managers. Dealers must comply with house rules for the conduct of the particular game. Supervises and trains all of the slot mechanics. Change attendants—Perform customer service transactions. Head Slot Mechanic—Responsible for the maintenance and repair of all slot machines. May perform as the poker cashier as well as conducting tournament activities. Also responsible for making change and redeeming coins for slot customers. Booth cashiers—Responsible for completing jackpot payout and hopper fill transactions.

Responsibilities include customer relations and verification of large jackpot payouts. Also responsible for an assigned bank. Shift Manager Slots —Oversees the operation of the slot department. Supervises change attendants and booth cashiers. Supervises the shift managers and head slot mechanic.

Also maintains records pertaining to all slot machines. Floorperson—Responsible for participating in the verification and conduct of jackpot payout and hopper fill transactions. Involved in verifying payouts on winning tickets. Oversees operation of the slot club.

Also responsible for designing and implementing programs to attract new and repeat customer visits. Writers are based behind the keno counter. Such systems are also heavily relied upon in the back of the house for operations including accounting. Participates in casino transactions. Understanding these systems and how they are integrated to accumulate and report data is important to successfully managing the casino hotel operation.

Controls access to keys permitting access to sensitive and restricted areas. Race and sports shift managers are responsible for administrative functions relevant to updating event information in the computer system as well as verifying payouts on winning wagers.

Figure 4. Race and Sports Writer Mutuel Clerk and Cashier—Provide service to customers by accepting wagers and handling payouts on winning tickets. Race and Sports Shift Manager—Responsible for the operation of the race and sports book during a particular shift. Director of Race and Sports—Responsible for the operation of the race and sports department.

Observes card and dice transfers and maintains security over the drop and count process. It is common for computer systems to be used to record revenue in gaming areas such as slots and keno. Focus is on compliance with gaming regulations.

To manage the operations of and record related transactions of the food and beverage outlets department To manage the operations of and record related transactions of the casino games department Customer table games ratings. PBX system. PBX system Data input at point of transaction.

IRS tip compliance processing and reporting. Internet reservations. Employee time, employee database Inventory items downloadd and consumed, restaurant items, downloading statistics. Hotel customer transaction history and account balances Financial history. STAFFING Proper staffing levels within the casino contribute directly to the adequacy of customer service and the profitability of the casino operation.

Management must be able to forecast the number of anticipated customers who will visit the casino during different periods and provide staffing levels that will be appropriate to service these customers. Overstaffing or understaffing may have negative consequences for the bottom line of the casino. Understaffing may result in loss of revenue due to customers leaving the casino because of inadequate service or unavailability of gaming positions at their desired game. Either of these conditions is undesirable for casino management.

The following discussion, using a hypothetical casino, provides a methodology for determining proper staffing levels based on the number of tables in operation during different days of the week. How many employees are needed to staff a casino under the following conditions: Dealers will work 60 minutes at the table, followed by a minute break.

Floorpersons will receive breaks totaling minutes out of each minute shift eight hours. The following numbers of tables are assumed to be required by day for blackjack BJ , dice, and baccarat: BJ Tables Open: Mon Days Swing Grave 40 40 Dice Tables Open: Chapter 4 Casino Management In order to determine the number of employees required to staff the casino under these conditions, the casino manager would need to consider the following: The number of stations needed to be open for each day of the week must be determined.

A station is defined as a position that must be staffed for the entire shift. In blackjack, there is one station per game. In craps, there are three stations: Relief dealers will be considered in the computations to follow. BJ Stations Required: Dice Stations Required: Baccarat Stations Required: How many dealers are needed to keep the required number of stations open and still allow for minute breaks after every 60 minutes on duty?Mon Days Swing Grave 40 40 Hull could not help noticing the large number of cars that passed him while he was waiting for a mechanic to arrive.

A substantial change to Regulation 6A that had already resulted in was that the Suspicious Activity Reporting requirements were removed from Regulation 6A and compliance was required with the revised requirements of Title Examples of cash-in include front money or safekeeping deposits as well as chip downloads in the pit.

Nongaming License Applies to those who work in a casino but are not directly involved in the play of the games, such as cocktail waitress, maintenance, mail delivery, or any job that requires access to the casino floor. The applicant has adequate business competence and experience for the role for which application is made.

With public corporations, licensing of thousands of stockholders was impractical. The table games, slots, sports book, and race book areas are examined in depth in a manner that provides unique insight into the operation of the area, as well as the perspective of the casino operator.

GLORIA from Cincinnati
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